Actuarial Science Degrees: Master's, PhD & Online Class Info

What kind of job can you get with a master's or Ph.D. degree in actuarial science? Find out degree program requirements, online options and info on courses and actuarial science training programs.

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Studying Actuarial Science: Degrees and Training at a Glance

Actuaries estimate financial consequences of risk, using math, applied statistics and financial theory to determine probabilities of accidents, sickness and loss of property from theft or natural disasters. They are employed by insurance companies, financial services firms, employee benefit departments and consulting organizations. The U.S. Bureau of Labor Statistics (BLS) projected a 27% growth in actuarial opportunities from 2010-2020, compared to 14% growth in jobs overall.

Income growth and professional progression may require passing subject area examinations of the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS). CAS addresses property and casualty losses and SOA covers life insurance, health and financial management. You might get an intermediate actuarial position by passing at least one examination and earning a master's degree. With experience and Associate or Fellow status with these organizations, you could have higher-level specialist or consulting opportunities. Ph.D. holders could work as consultants, college teachers and researchers in actuarial science, math, operations research or applied statistics.

Master's

Ph.D.

Who is this degree for?

Individuals who want an entry-level to intermediate position in an actuarial science field

Individuals interested in research, postsecondary teaching or management of research functions

Common Career Paths (with approximate salary)

- Actuary ($70,000 - with 2-4 years of experience)* - Actuarial specialist, SOA or CAS Associate ($122,000 - advanced experience may be required for this salary)* - Actuarial services director ($180,000 - advanced experience may be required for this salary)*

- Professor of quantitative methods, operations research or statistics ($137,000)** - Actuarial consultant, SOA or CAS Fellow ($149,000 - advanced experience may be required for this salary - Actuarial executive ($267,000 - advanced experience may be required for this salary)*

Master's Degree in Actuarial Science

You may study actuarial science in a dedicated program or as a concentration within a math or MBA degree program. Master's study in actuarial science might also be offered through a math department, a business school or a risk management or insurance department. Programs may have requirements outside of a typical graduate actuarial curriculum. For example, an MBA program with a concentration in actuarial science may require meeting MBA admission requirements and completing standard foundations courses in business disciplines along with mathematical statistics specific to actuarial science. You'll typically develop quantitative skills to model financial impacts of risk factors and to design solutions to manage them.

A master's candidate in actuarial science can expect 4-6 semesters of full-time study. Programs may require a summer internship, a thesis or other culminating project. You may have some elective options that permit you to specialize. Your school may offer dual degree options that will allow you to also graduate with risk-management credentials.

Pros and Cons

Pros

Opportunity to enter a well-paid, stable field with multiple career tracks and income growth with experience and professional certifications

Schools may offer courses aligned with SOA and CAS examination topics so you'll have a chance to pass one or more exams before you graduate

Electives may permit development of a specialization

Flexible career options

Cons

Career requires substantial commitment to ongoing learning

Intense study may be required for examinations

Jobs may be more available in geographic areas with substantial financial service organization activity

Depending on your academic background, you may be required to complete foundational quantitative or business subject courses before beginning the master's program

Courses and Requirements

For this field, you'll study mathematical modeling, valuation of financial assets and applied statistics. Schools may encourage you to pass one or more SOA or CAS examinations during your studies. Some programs may require a thesis or a real-life capstone project. You might take courses like these:

Life contingencies

Loss distribution and credibility theory

Principles of property and casualty ratemaking

Quantitative financial risk models

Valuation of financial assets

Applied statistics and econometrics

Advanced survival models

Online Courses

Actuarial science degree candidates should probably expect to complete their degrees on campus, since necessary courses may not available online. Depending on your school, some courses may be available online, or you may be able to complete some online courses at another school for transfer credit. You may be able to take courses as an independent enrollee or your company may provide various forms of on-the-job training. SOA and CAS offer online educational opportunities ranging from webinars and courses eligible for continuing education units to self-study products.

Getting Ahead with This Degree

Schools designated as Centers of Actuarial Excellence by SOA often encourage or require students to take one or more SOA or CAS exams before they graduate. CAS encourages students to contribute services to the field through volunteerism. You may land an internship that leads to a full-time position. Some schools have chapters of Gamma Iota Sigma, the actuarial science fraternity. Related research centers may provide opportunities to work on real-world consulting problems posed by financial services companies.

Ph.D. Covering Actuarial Science

Ph.D. programs specifically in actuarial science may be somewhat less common than those in risk management and insurance, which incorporate actuarial science topics. Risk management programs require study of economics, finance, statistics and applied math to analyze risks of alternate management decisions. If you're pursuing a Ph.D. in actuarial science or closely-related disciplines, you're likely headed for a research and teaching career, advanced consulting opportunities or senior management of a research-oriented actuarial or risk management function in an organization.

You may apply for a Ph.D. program in math, actuarial science or risk management with an appropriate bachelor's or master's degree. If you enter with a master's degree, you'll probably complete 20-30 additional credits. Exact requirements may be modified, depending on your background. Prerequisites might include courses in linear algebra, mathematical statistics or undergraduate calculus.

Pros and Cons

Pros

Programs can lead to high-security, lucrative careers

Can be a great fit for students with high-level math and analytical aptitudes

The Association to Advance Collegiate Schools of Business projects shortages of professors in business schools due to retirements and increased enrollment worldwide *

Career based on objective criteria like experience, knowledge and passage of actuarial association examinations may be less subject to organizational politics

Cons

May not be the career for those who prefer high social contact environments; career extended periods of working alone with a computer

Requires lifelong commitment to continuing education

Field requires extremely high levels of thoroughness and accuracy

Source: *The Association to Advance Collegiate Schools of Business

Courses and Requirements

For this degree program, you'll need a broad math background and aptitude for math research. Students should expect a highly quantitative course sequence. Schools may also have second language requirements. Like other doctoral candidates, you'll need to maintain a high GPA and pass preliminary and oral examinations prior to defending your dissertation.

Candidates will typically take courses outside their department, often in economics and finance. Your school may expect you to pass SOA or CAS exams and produce publishable papers. You may also be expected to teach and contribute to research initiatives and the publication of research findings.

These courses may be typical:

Seminar in actuarial science, risk management and insurance

Insurance theory

Macro and microeconomics

Advanced financial econometrics

Computational risk methods

Advanced stochastic process

Asset pricing

Online Courses

Students should probably not expect that advanced courses will be available online, though individual courses may be available. If they are, they may not be offered every semester. If you want to pursue a specific research topic, you may be able to work with a professor on an independent study that you could pursue online. Supplemental courses and workshops may be offered by professional associations, but your school may not accept these for credit.

Stand Out with This Degree

Recommendations for master's candidates, like passing SOA and CAS examinations, may also apply to Ph.D. students. Potential employers may be looking for contributions to published research, conference presentations and teaching ability. Your school and organizations like SOA may offer awards, research grants and scholarships.

You could get points for service to the field through volunteerism. You might contribute to background work for textbooks through The Actuarial Foundation sponsored by SOA or by winning a prize or individual research grant. The Actuarial Foundation supports initiatives for consumer education math education in grades 4-12 that may welcome voluntary participation by advanced students.